A couple of weeks ago, the Federal Reserve said: “To provide support to mortgage lending and housing markets, and to improve overall conditions in private credit markets, the Federal Reserve will purchase a total of $1.25 trillion of agency mortgages mortgage-backed securities and up to $200 billion of agency debt.” That’s a total of $1.45 trillion! Of course, when you print your own money that’s no big deal, except that it devalues the dollar and there’s no way to measure the impact for many years to come.
In other words, the dollar will continue to collapse and we, the consumers, will see a steadily decreasing of the buying power that our dollars have; EXCEPT in real estate.
The Fed has purchased $857 billion of their scheduled $1.25 trillion in mortgage-backed securities, according to Morgan Stanley. It's also bought $129.2 billion of the planned $200 billion in so-called agency debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks, which finance mortgage purchases. Look, this is basically junk they are buying because the majority of these mortgages are non-performing and under-performing, debt-riddled, negative equity paper and all its doing is devaluing the dollar BUT it is also providing a slew of devalued homes that can be bought on the cheap and will appreciate in value quickly, depending on the location and condition of the real estate, and how soon and how strong the market is when it comes back, and, mark my works, it will come back, sooner or later.
Now is absolutely the best time, in history, to buy a house or a piece of commercial property, or land and I believe this chance may soon disappear before you even realize it was in front of your eyes, so make the best of it and beg, borrow or steal enough money to buy what you know is the best deal you’ve ever come across and they are out there, right now, and if you don’t know where they are, ask me or any Realtor and if you need a loan ask me, or another mortgage broker. Now is the time for action, tomorrow is the time for profit.
May out friends respect us, trouble neglect us, angels protect us and heaven accept us.